The region saw several significant projects move forward, including expansion at several area manufacturing firms, particularly those that supply parts to Honda and other auto makers. The rebound is occurring across much of the region as auto sales and production hit record levels and parts makers have become more confident in the industry’s future, local experts said.
Companies who announced expansions include Yamada North America, which pledged in June to add about 100 jobs over three years as part of a $15.2 million expansion to add more production and dock space. Pentaflex, a firm that makes parts for the heavy truck industry, also announced this spring it will hire 40 workers and add 20,000 square feet to its plant on Gateway Drive over three years.
Navistar, a major employer in Clark County, also took steps to becoming more stable after reaching a new, four-year agreement with its union members. This fall, the truck-maker also announced a joint agreement with General Motors in which the companies will share resources and assemble medium-duty trucks in Springfield. That agreement is expected to create at least 300 new jobs and more than $12 million in investment in the coming years.
But the region saw challenges in other areas, especially retail. The Upper Valley Mall has faced a year of turmoil as its value as a property plummeted and the retail center was put up for bid in an online auction earlier this year. Property transfer records show the mall sold to a group called New Upper Valley Associates LLC for $2.65 million. Longtime anchors Macy’s and J.C. Penney announced early in the year that they would close their stores at the Upper Valley Mall.
In November, Target announced it would close its Springfield location in January 2016, a move that will affect more than 100 workers at the retailer.
Aside from retail, the city of Springfield also lost a longtime employer when National Oilwell Varco Inc. said it would close its local operations, a move that affected at least 150 employees.
Despite those challenges, local officials are seeing signs that 2016 will be a busier year as the economy continues to recover.
“As you look at the beginning of 2016, the level of activity is already setting itself up to be stronger even than it was in 2015, and 2015 was a good year, said Horton Hobbs, vice president of the Chamber of Greater Springfield.
In Champaign County, officials recently created the Champaign County Economic Partnership, a new economic development agency which receives funding from various sources, including the city of Urbana, Champaign County and private businesses. In recent years, the city previously handled most economic development duties as the area recovered from the Great Recession. That organization is expected to create a one-stop shop for businesses, and work more closely with the Champaign County Chamber of Commerce and other area agencies in 2016.
Business parks
Officials in both Springfield and at the chamber expect renewed focus on the region’s business parks in 2016 as local manufacturing firms look to expand and officials try to attract new businesses to the area. Work was completed in recent years on the Champion City and PrimeOhio II business parks.
At PrimeOhio II, construction is expected to begin this year on a $7.5 million Love’s Travel Stop, Hobbs said. The project has been delayed, but once the truck stop is open it is expected to be open 24 hours a day and bring as many as 60 full and part-time jobs to the area. The truck stop could break ground as early as this spring.
“Development like that takes a lot of time and when you’re a company like Love’s building 18 to 21 new stores a year it doesn’t take much to kick on project down on the list a little bit just because another project is more ready to go,” Hobbs said.
Having industrial parks like PrimeOhio II and the Champion City Business Park, a roughly 30-acre site at Lagonda and Belmont Avenues, gives the city an edge when competing for potential businesses, said Bryan Heck, deputy city manager for Springfield.
“That’s a major point for our community to add additional industrial park space an have that land available for companies to locate within our community,” Heck said.
The automotive and aerospace industries fared well in 2015, and that will likely continue this year, said Tom Franzen, assistant city manager and economic development director for Springfield. He pointed to HDI Landing Gear USA, a Springfield company that is ramping up and investing as part of an agreement to produce landing gear for Boeing’s 777 and 777x programs.
“2016 is going to be a year where we will continue the momentum we’re building in 2015 and hopefully we see a few more projects this year than what we saw in 2015,” Hobbs said.
Downtown a focal point
In Springfield, local economic development officials also expect continued development downtown in 2016.
A new microbrewery could move into a vacant property at 109 W. North St. as early as May, Heck said. That project will include about $1.3 million on building improvements and $800,000 in new equipment.
The project will help fill a vacant property, and potentially draw more residents to visit downtown Springfield, Heck said. The city also completed work on Veterans’s Bridge, a major gateway into downtown, and has seen continued investment from the Ohio Valley Surgical Hospital, for example. Demolition on portions of the Crowell Collier Building downtown is also nearing completion and will open the area for additional investment, Heck said.
The city also saw continued development at the former South High School, which is being used for the Global Impact STEM Academy, an educational program designed to train students for careers in math and science.
“There’s been a lot of continued investment and reinvestment downtown, and we think some of those investments will actually spur additional investment here in 2016,” Heck said.
City officials will also review a unified plan for downtown, which was last reviewed about a decade ago. Reviewing the plan will allow city officials to review zoning and land use downtown.
“What the city does is provide the groundwork for how development will occur when it happens by private property owners,” Franzen said. “This unified plan is exactly that. It’s a guiding plan.”
Despite the region’s recent retail challenges on Upper Valley Pike, businesses have been expanding on Bechtle Avenue, including construction of a new Hobby Lobby, as well as a proposed Dick’s Sporting Good store and news that Kay Jewelers will open a standalone store in the area. The city has also seen some investment along South Limestone Street in 2015, including construction of a Dunkin’ Donuts and a new Burger King location. Some fast food restaurants have also renovated their businesses on East Main Street.
This year, local officials will work to rezone the South Limestone commercial corridor, Heck said. That will likely involve rewriting portions of the city’s zoning code for that area to make it more consistent with other commercial corridors in the city and encourage more investment. That area includes an area from Leffel Lane to just north of John Street, Heck said.
“That’s just one component we can control,” Heck said. “Obviously the private market still dictates a lot of that but if we can remove a barrier to that commercial development then we want to be proactive.”
Despite progress downtown and in several industries, the region still has a long way to go, said Hobbs, of the chamber.
“2016 is going to be a year where I hope we see a lot of the groundwork we’ve laid come to fruition,” Hobbs said. “I think it’s going to be a year of progress on a number of fronts.”
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